Grampian Foods may be up for sale
Grampian Foods, one of Britain’s largest food groups may be up for sale, which could generate a handsome payment of £275m (€392m) for founder and majority shareholder Freddie Duncan.
Grampian, based in Aberdeen, employs around 20,000 people and has recorded profits of £5m (€7m) in the year up to last May. Its operations are mainly based in Britain and Thailand where it produces over 7,000 tonnes of chicken products and 5,300 tonnes of pork and pork products per week.
Buyers
Among the possible buyers are Sadia and Perdigão, Brazil’s two largest meat processors. The value of the business is set at £400m (€571m).
The company made losses of £40m (€57m) between 2005-2006, which were attributed to rising grain, energy, packaging and transport costs that could not be passed on to the customers. Eddie Power, group managing director, said that the turnaround had been achieved by recently winning new business in the chicken and pork divisions.
Investments Bank JP Morgan Cazenove has been called in to sell the entire business. Should a single purchaser be difficult to source, Investec has been asked to divest parts of the operation.
Related websites:
• Grampian Food Country Group
• Sadia
• Perdigao
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